Brazil’s richest 0.1% increased their share of national income to a record 13.1% in 2024 from 10.2% in 2020, according to estimates by inequality researcher Sergio Gobetti based on detailed tax filings. The data complicate President Luiz Inacio Lula da Silva’s argument that falling inequality and rising employment show his administration has broadly shared economic gains. Brazil’s record-low 2024 Gini coefficient and stronger labor market point to improvements at the bottom of the distribution, but household surveys used for the Gini often capture labor income more effectively than investment gains. Higher interest rates, partly linked to expanded government spending and fiscal concerns, boosted returns on financial assets held disproportionately by wealthy households. Financial income, mainly fixed-income returns, accounted for nearly one-third of the richest 0.1%’s increased income share between 2020 and 2024. With about half of Brazil’s public debt linked to the Selic benchmark, rising rates generated larger interest payments as debt expanded. Gross public debt has risen by more than 10 percentage points of GDP since Lula took office to 82.5%, while the Treasury expects floating-rate securities to reach as much as 53% of total issuance this year. Tax collections on fixed-income earnings rose 325% between 2020 and 2024 to 92.1 billion reais ($18.1 billion), and increased another 25% in the latest period. Although the central bank began easing in March, the Selic is now 14% and economists surveyed weekly expect it to fall only to 12% next year, suggesting the income boost for wealthier households may persist. Lula is seeking reelection in October.